Kenya adopts Infrastructure Pricing Framework to curb project inflation
Kenya introduces a new data-driven infrastructure pricing framework to eliminate inflated project costs, improve transparency, and ensure value for money...
✨ Key Highlights
Kenya has adopted a new Infrastructure Projects Pricing Framework to combat inflated project costs and ensure value for money in public investments. This data-driven system aims to eliminate irregular pricing practices that have plagued government infrastructure projects for years.
- The new framework seeks to reduce project overruns by up to 25 percent by adopting the First Principles Approach (FPA).
- The reform will be coordinated by the Chief of Staff and Head of Public Service through a Multi-Agency Technical Working Team.
- A 2014 African Development Bank (AfDB) report ranked Kenya among the most expensive countries in Africa for road construction, with one kilometer of urban tarmac costing an average of US$440,000.
- Between 2013 and 2017, taxpayers reportedly lost KSh49 billion due to unexplained cost escalations in road projects.
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Cabinet Approves New Embassies, Kiambu Road Dualling, and Infrastructure Pricing Framework - November 2025
On November 11, the Cabinet approved the establishment of three new Kenyan embassies in Vatican City, Copenhagen (Denmark), and Hanoi (Vietnam) to strengthen diplomatic ties and expand the country's global footprint. The Vatican City embassy aims to specifically bolster cooperation with Catholic development agencies in Kenya. The Cabinet also approved the dualing of the 23.5km Muthaiga-Kiambu-Ndumberi road to alleviate traffic congestion and enhance mobility between Nairobi and Kiambu Counties. As part of a broader effort to ensure value for money in public investments, Kenya has adopted a new data-driven Infrastructure Projects Pricing Framework to combat inflated project costs and eliminate irregular pricing practices.
